The high-level panel appointed by the chemicals ministry two years ago for price negotiations of drugs patented abroad and marketed in the country is yet to come out with its recommendations, thanks partly to the delay in the finalization of the proposed national pharmaceutical policy.

The panel, set up in February 2007, supposed to suggest a mechanism in three months time, held six meetings so far with industry associations, NGOs, concerned ministries and departments, but is still in the process of 'drafting the recommendations', it is learnt. Official sources close to the panel said the committee headed by deputy secretary in the pharma department was in the final stages of framing the proposal for price negotiations of patented drugs and medical devices.

However, it is unlikely to come into effect in near future with the delay in the clearance of the pharma policy 2006, which is still pending before the Group of Ministers (GoM). The report, to be submitted to the chemical ministry, is to be forwarded to the GoM to be included in the policy.

Sources said the panel, which went into details of similar systems existing in other countries, was working on framing an India-specific mechanism. The committee is learnt to be against adopting any foreign pattern in this regard, as Indian scenario was typically different from other countries, for its complexities.

Meanwhile, the multinationals have already started fixing India-specific prices for their new drugs being introduced in the country, looking to get a kinder treatment from the government while framing the policy on price negotiations. The Indian subsidiary of US-based Merck recently announced the launch of its cervical cancer vaccine, Gardasil, at less than half the price it charges its US consumers. And Pfizer also has its blockbuster Viagra at lower price, compared to the same in other parts of the world.

Though price negotiation for drugs patented abroad before giving marketing approval in the country became essential following the amendment in the patent law in 2005, the government set up the panel only in February 2007. It was to submit report within three months. But it remained headless for over 10 months after the transfer of its chairman out of the chemicals ministry. Then the government reconstituted the same, but the pace of the work remained dead slow as in the case with most of other Government committees and policies.